RIYADH: Saudi Arabia’s annual inflation rate slowed to 1.7 percent in February, the lowest level in a year, as stable food prices helped offset continued pressure from housing rents.
The consumer price index eased from 1.8 percent in January to 1.7 percent year on year, matching the level recorded in February 2025.
The Kingdom’s inflation trajectory broadly aligns with projections by the International Monetary Fund, which said in October that Saudi Arabia is expected to maintain annual inflation of about 2 percent in 2026.
In its latest report, GASTAT stated: “This increase was mainly driven by a rise in housing, water, electricity, gas, and other fuel prices by 4.1 percent, transport prices by 1.4 percent, and prices of restaurant and accommodation services by 1.9 percent.”
The data further showed that housing, water, electricity, gas, and other fuels rose 4.1 percent in February 2026, mainly driven by a 5.1 percent increase in actual housing rents.
